Malaysia Won't Charge Those Who Willingly Return 1MDB Funds

(Bloomberg) -- Malaysia is taking a pragmatic approach to recoup funds lost through 1MDB, saying it won’t press charges against those who return the money voluntarily.

The Malaysian Anti-Corruption Commission has named 41 respondents in a forfeiture lawsuit to recover 270 million ringgit ($65 million) that originated from former Prime Minister Najib Razak’s account, Chief Commissioner Latheefa Koya said in Kuala Lumpur. About 2 million ringgit of that has been surrendered, she said on Friday.

``If they voluntarily decided to give back the money, all is well and true, that's what we're focusing on,'' Latheefa said. ``And since the law is clear and we have alternative ways of recovering the money, we'll go for the most pragmatic way.''

The agency isn’t ruling out any action against those who returned the money if they were later found to be involved in money laundering.

The Southeast Asian nation has recovered about 919 million ringgit from 1MDB so far, including the return of funds from the U.S. and Singapore, said Latheefa, who was appointed June 1. The agency known as MACC will focus on onshore asset recovery, with global efforts overseen by another team, she said.

Global Assets

The globe-spanning 1MDB scandal has reached the highest levels of Malaysian politics and ensnared Goldman Sachs Group Inc. in its first criminal case. Najib is currently facing trial for the first set of 1MDB-linked charges against him.

The country is still seeking to recover $5 billion in global assets thought to be lost through 1MDB, MACC Deputy Chief Commissioner Azam Baki said on Friday. That’s more than the $4.5 billion that U.S. prosecutors estimated because of the inclusion of local transactions linked to SRC International Sdn. and appreciation in asset value. Malaysia will name the members of the task force focused on the global asset recovery soon, he said.

The local 270-million ringgit forfeiture names branches of opposition party United Malays National Organisation, as well as politicians, companies and NGOs, as recipients of the fund.

To contact the reporter on this story: Anisah Shukry in Kuala Lumpur at ashukry2@bloomberg.net

To contact the editors responsible for this story: Yudith Ho at yho35@bloomberg.net, Chan Tien Hin

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